Distribution Strategy of a marketing plan – Case Study Example
Marketing Plan Distribution Strategy Marketing Plan Distribution Strategy Distribution Outlets Distribution is critical in a business organization since it ascertains the availability of products to consumers, and this improves the customer base, thereby maximizing the profits of such a firm. Various distribution outlets are available for a firm to choose the most suitable, and hence improve base. As such, it is critical for such firms to consider all distribution channels and reduce losses that emanate from the wrong selection of distribution channels. In this manuscript, a distribution strategy for Old-Timer Watch Company will be considered.
Selecting a distribution plan for Old-Timer Watch Company remains a challenge, since various modes come with specific costs. The firm also faces a magnificent competition from established firms such as Swatch. The firm intends to have a mix in the distribution plan, where it will employ direct distribution, as well as intermediaries in the distribution. Increasing the number of marketing plans, though costly, ensures that a greater number of customers, thereby increasing sales (McDaniel, Lamb, & Hair, 2011).
Old-Timer Company will employ sales representatives, local distributors and direct distribution in the distribution. Following examples from major watch companies like Rolex and Swatch, our firm will work relentlessly in creating retail distribution outlets in major parts of the region, and expand our marketing to untapped markets that include the interior-most rural areas. Our firm will also incorporate technology in our distribution by availing our products online, and create suitable sites that will advertise and allow our customers to order various products (McDaniel, Lamb, & Hair, 2011). Global distribution may be complex currently, but as our firm grows, it may consider it as an option, where it will select a number of subsidiaries, and hence enhance its growth.
Old-Timer Watch company set subsidiaries regionally will aid significantly in availing our products to consumers. Additionally, clients may order our products through the internet and the firm will arrange timely delivery to the customers at subsidized costs. This calls for the firm to improve on its advertisement modes. Old-Timer Watch will incorporate advertisement through various media forms such as television and online advertising (McDaniel, Lamb, & Hair, 2011).
Demand Distribution over Time
Survey shows that in the recent years, the demand for watches has significantly reduced, after having a sharp increase. Recent survey shows that it rose by 10% in 2011-2012, and then had a sharp reduction in 2013, owing to the economic recession (McDaniel, Lamb, & Hair, 2011). Economic experts also show that in the demand for watches in Asian nations such as China has surpassed that of the US. As such, it will be critical to distribute our services to these nations, through carefully planned distribution channels and improved advertising.
Besides, the improvement of technology has seen a sharp rise of Smartphone devices, thereby lessening the demand of watches by the young population below 35 years. The target customers will be the aged individuals and the younger majority, who purchase the products for aesthetic purposes. Additionally, these individuals may purchase our products for their aged relatives as gifts. Most middle aged populations are low- income earners. As such, it will be critical to consider production of affordable watches, and ascertain the profit maximization through sales of products at large volumes. Integration of various payment modes will also enhance increased sales. However, Old-Timer Watch Company has to ensure that the payment modes selected are safe, in order to improve client reliability.
Physical Distribution System
Old-Timer Watch, through various sales representatives will ensure the placement of products to the markets in remote areas. This calls for promotion of our products to such areas through advertisement. Besides, the firm will establish a strong relationship with subsidiary distributors both locally and regionally. These will play a critical role in marketing of the products regionally, and to introduce our products to areas where they are unavailable. It will also be critical to implement online-orders where consumers can order their products through the internet, and the firm will arrange for delivery (McDaniel, Lamb, & Hair, 2011). This calls for our firm to provide after sale services such as free delivery.
Employment of more members within the firm that will carry out the marketing processes will also serve significantly to increase sales that enhance sales. However, to overcome challenges of competitors, Old-Time Watch Company needs to train employees to acquaint them with apt marketing strategies (McDaniel, Lamb, & Hair, 2011).
An amplification in demand calls for an increase in production, in order to avail our products to the expanding markets. This may compel our firm to decentralize and establish firms in the region, and across the globe. Regions with a strong market base such as China will receive preference. This compels the firm to increase its human resource (McDaniel, Lamb, & Hair, 2011). Additionally, establishment of firms abroad calls for complex registrations and certifications while critically considering the political and economic suitability of such environments.
McDaniel, C., Lamb, C., & Hair, J. (2011). Marketing essentials. Mason, OH: South-Western/Cengage Learning.